Performance optimization through business insight, dealing with IFRS 17 in a post-Solvency II world, and the challenges associated with stress testing for insurance firms in the US. These were the focus areas for Moody's Analytics at this year's Moody's Insurance Summits in London and New York.
Coverage this month includes the International Monetary Fund (IMF) recent Article IV on consultation with Chile, are encouraging institutional investors to give preference to investing in companies with good governance standards. The Australian Prudential Regulation Authority (APRA) has highlighted sustainability as a key theme in its submission to a Parliamentary Committee enquiry into the life insurance industry. While APRA has not included sustainability in regulation, the knowledge that they are interested in it might have an influence on insurers' activities. The United States Federal Insurance Office, published its fourth report on the insurance industry, and its first report on the protection of consumers and access to insurance.
Coverage this month includes an article from the Secretary General of the International Association of Insurance Supervisors (IAIS) which directly addresses the suggestion that a global unified risk-based insurance capital standard is not a realistic goal given the existing divergent approaches. A speech by Verena Ross of the European Securities and Monetary Authority, one theme of the speech is regulators need for high quality data. The UK's Prudential Regulation Authority's (PRA) thinking about insurers using an internal model to calculate their required capital. The PRA is concerned that the output of an insurers internal model may drift, or evolve, over time to become a weaker capital measure.
Institutions are transforming their analytic capabilities to move beyond static reports that explain what happened in the past, to more modern analytics that can explain why an event occurred and what is likely to happen in the future.
This paper is the first in a series of short whitepapers where Brian Heale examines the major challenges and issues insurers face for report production, data management, and SCR calculation for Solvency II. The series of papers also examines the approaches insurers have taken in their Solvency II projects to date.
This article explains how Moody's Analytics can help insurers with their solvency monitoring, reporting and stress-testing requirements in Solvency II.
This article addresses the two interdependent needs of effective integrated risk training and measuring optimal risk management to make recommendations for how to train and track behavior.
In this note, we consider some of the technical challenges and solutions in adapting internal models to account for the effect of dynamic hedging strategies in
In this White Paper, we look at the challenges that insurers, fund managers and market data providers face in providing and aggregating the asset data required for the completion of the QRT templates and the SCR calculation.
When Monte Carlo methods are used to determine solvency capital requirements, the end result will depend on the way in which the set of net asset valuations are obtained. For example, if the samples are generated at random, then changing the random number seed would lead to a different capital requirement. This document examines the percentile estimation process in order to alleviate or lessen the variability of the capital requirement.
This Whitepaper explores how the Solvency II Solvency Capital Requirement (SCR) calculation process can be automated to facilitate efficient and timely regulatory reporting. The SCR calculation process is complex, requiring significant data consolidation, cleansing and transformation to produce accurate and consistent results.
As the deadline for Solvency II approaches, many insurers are assessing the best approach to delivering the Pillar III reports required by EIOPA. Many recognize the challenges of data consolidation, data cleansing, calculating accurate results and formatting reports to submit to the regulators.